Not quite. The point of the broken window fallacy is that had the money not been spent on the window, it would have been spent on something else. So breaking a window does generate revenue, but not necessarily more than not breaking a window
Whatever happens, the shopkeeper is in a worse position than he otherwise was
Here the point is that they’re passing the money back and forth. That’s like the AI companies right now - passing money round in a circle and that being presented as if it were the same thing as the industry as a whole making money
NVidia gives money to OpenAI, who give it to another company to build datacentres, who give it back to NVidia and NVidia’s Number Goes Up
Isn’t this just the broken window fallacy but with a poop fetish?
Not quite. The point of the broken window fallacy is that had the money not been spent on the window, it would have been spent on something else. So breaking a window does generate revenue, but not necessarily more than not breaking a window
Whatever happens, the shopkeeper is in a worse position than he otherwise was
Here the point is that they’re passing the money back and forth. That’s like the AI companies right now - passing money round in a circle and that being presented as if it were the same thing as the industry as a whole making money
NVidia gives money to OpenAI, who give it to another company to build datacentres, who give it back to NVidia and NVidia’s Number Goes Up